Wilsonville, Oregon Real Estate Forum

Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes

This forum is for Real Estate Investors and Professionals who are interested in networking and talking about Wilsonville, OR and surrounding area (Tigard, Canby, Tualatin, Lake Oswego) market and investment opportunities.

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Cody Cox

Note Investor · Wilsonville, OR · Member since 2010 · 149 posts · 113 votes

On the contrary, my investment approach for notes is NOT to acquire the property. Rather, I prefer the cash-flow from being the lienlord, rather than a landlord. My approach every time is to seek to find a resolution for the owner/borrower to retain ownership and remain in their home. With an NPN, there is flexibility in finding the right workout solution for the borrower, with an attempt to get them back on track to make payments. If not, we then go through the process of a Deed-in-Lieu or a full foreclosure, and then immediately re-market the house.

Enjoying the cash flow as the bank rather than as a landlord is my preference.

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Jay Krietzman
Aurora, OR · Member since 2018 · 39 posts · 8 votes
8y
Do you find it to be a hassle that your buyer/seller knows your an agent/broker? Does that cause trust issues? Seems like that's the main reason why people preach against it.
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
@Jay Krietzman no. Never had an issue . Mine is with my law license. Some people buyers/sellers have biased against lawyers so one I disclose which I have to do they just walk away. But I don’t care about bias. Their loss.
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Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y
@Brian Bradley a llc is a pass through entity. It doesn’t have a “lower tax rate”
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
hence lower tax rate vs not having one. Go do a simple basic search on tax benefits and rates of LLC and if you elect to be taxed as an S-Corp their you go @Steve B. and no self-employment tax rate now for not being incorporated. Just sayin Steve. Yes you do get lower tax rate for LLC electing to be taxed as an S-corp and then not paying all the self-employed taxes. Talk to your CPA and lawyer.
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
@Steve B. The IRS allows the LLC to be taxed as a corporation, partnership or sole proprietor, depending on elections made by the LLC and the number of members. Elect to be an S-Corp for taxes. Just saying!
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Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y
@Brian Bradley ok so now your talking about an LLC electing S corp status?
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
@Steve B.do you need to understand how setting up an LLC works. You must elect when you set it up how you want to be taxed. Have your lawyer and CPA do this for you. YES, LLC then you must CHOOSE how to be taxed when you set it up. If you do not, then you have an LLC that then will have pass through tax and not be set up very properly. Hence why you have CPAs and lawyers BEFORE you do anything.
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Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y
@Brian Bradley glad you clarified that and spoke about electing a s-corp for a LLCbecause your original post indicated that a LLC puts you in a lower tax bracket. This is a misunderstanding a lot of new investors make.
@Jay Hinrichs your new logo looks like a potential prototype for Hillary in 2020
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
@Steve B. good for pointing it out to make sure its clarified. When somebody ask me questions on any forum its general. I then follow up with them personally for a full detailed analysis which if they want which is not the place on a public forum. Any attorney they talk to and CPA should / would advise them on how to set it up.
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Account Closed
Real Estate Investor · Camas, WA · Member since 2014 · 3 posts · 3 votes
8y
@Brian Bradley this is some great discussion on legal entities thank you for all the information. You are licensed in Washington as well right? Do you know if forming an LLC there will actually cause you to pay more in taxes? (no state income tax but there is a business and occupation tax if I understand it correctly)
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Jay Krietzman:
Do you find it to be a hassle that your buyer/seller knows your an agent/broker? Does that cause trust issues? Seems like that's the main reason why people preach against it.
the main reason gurus preach against the license is simply GREED.. they think if your not licensed you can take unconscionable profits and be OK.. IE tell someone their 300k property is only worth 100k flip it the same day for 200k that type of thing.. when in fact and I am sure Mr. Bradley can attest anyone can get sued for this license or not... that's again the misconception of wholesale guru's.
Podcast Guest on Show #222
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Steve B.:

@Brian Bradley glad you clarified that and spoke about electing a s-corp for a LLCbecause your original post indicated that a LLC puts you in a lower tax bracket. This is a misunderstanding a lot of new investors make.
@Jay Hinrichs your new logo looks like a potential prototype for Hillary in 2020
NOpe just raising money as a charity to put a first responder into a home free and clear.. and hoping all these successful real estate folks on BP will join in on the mission.. that's my BP mission going forward.. CHARITY. First responders Hero's provide them a home free and clear.. and let the real estate community be proud sponsors..
Podcast Guest on Show #222
JLH Capital Partners51 Review
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
In regards to Series LLC's and states that recognize them or not, we have discussed that the issue comes down to each specific state recognizing the "internal liability shield."
For the State of Oregon recognizing internal liability shield. The long end of the story is YES, Oregon does by statute recognizes internal liability shield for owners / members of an LLC. So even though Oregon does not have a Series LLC, the state of Oregon does recognize internal liability shields. see OR statute below to be comforted.
ORS 63.165(1)(2)
(1)the debts, obligations, and liabilities of LLC, whether arising in contract, tort or otherwise, are SOLELY the debts, obligations and liabilities of the LLC. A member or manager is NOT PERSONALLY LIABLE for a a debt, obligation or liability of the LLC solely by reason of being or acting as a member or manager.
(2)The failure of a LLC to observe the usual formalities or requirements relating the exercise of its LLC powers or management of its business is NOT a ground for imposing personal liability on the members or managers for liability of the LLC. [1993 c. 173 section35; 1999 c.86 section 10.]
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
The same goes for Washington State. See RCW 25.15.126. Though Washington State does not have a statutory Series LLC to create in the state, it does recognize the internal liability shield offered by LLCs on its members.
So, though Washington does not have a Series LLC, the State of Washington does recognize the internal liability shield principle, and that is what the courts would be looking at if you created an out of State Series LLC lets say in TX or NV or DE, and owned a property in WA and were sued in WA. The personal liability shield of the Series LLC would still be upheld so long as its formalities were followed. Just like a standard LLC.
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
Just finished a Continuing Legal Education Course (CLE) specifically for Series LLC. Some really great updated info. For example, 17 states now have Series LLC. Should see 20 by next year.
ALOS, FL now recognized the Series LLC and will uphold another states Series LLC.
Also, Know which states require Notice for Series LLC. Some states like IL requires customers to be on notice to uphold the Series. Know what the state you created your series in what their notice laws are. An good example and practice of Notice for Series LLC's is: Leases should say "ABA, LLC – Series A" (this is the name of the company the tenant is contracting with. Same with vendor contractors, etc.
And, don't forget that when you create your Series LLC, just like any LLC, you MUST elect how yo are going to be taxed by the government. Partnership, SCorp, etc. Don't forget to talk to your CPA about what to elect.
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
7y
Just to put perspective of the misconception of the Series LLC being a new entity, it is not. It was first created in 1996 in Delaware. 22 years ago. The traditional LLC first became available in Wyoming in 1977, but most other states did not follow suit until the 1990s). The next state was Delaware in 1991 to enact the LLC. In 1994/5 CA. It was not until 1996 that all states had a LLC. The same year the Series LLC was statutorily crested. So it’s interesting how people quickly fall in love with the traditional LLC thinking it’s been around forever but fairly after the creation of the LLC in most states, the series LLC immediately came in the game. In fact just one year after CA codified the traditional LLC. Just a quick timeline of history and the LLC relating to the misconception of the “novelty” of the Series LLC.
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Cody Cox
Note Investor · Wilsonville, OR · Member since 2010 · 149 posts · 113 votes
7y
Have you seen any conversation regarding Oregon allowing a Series LLC?
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
7y
@Cody Cox not yet. I was going to talk to some state legislatures now to see what we can do to have Oregon revise their LLC statute for Series LLC. In regards to Series LLC's and states that recognize them or not, the issue comes down to each specific state recognizing the "internal liability shield." Not if thy have a Series LLC to create in that state or not. For the State of Oregon recognizing internal liability shield. The long end of the story is YES, Oregon does by statute recognizes internal liability shield for owners / members of an LLC. So even though Oregon does not have a Series LLC, the state of Oregon does recognize internal liability shields. see OR statute below to be comforted. ORS 63.165(1)(2) (1)the debts, obligations, and liabilities of LLC, whether arising in contract, tort or otherwise, are SOLELY the debts, obligations and liabilities of the LLC. A member or manager is NOT PERSONALLY LIABLE for a a debt, obligation or liability of the LLC solely by reason of being or acting as a member or manager. (2)The failure of a LLC to observe the usual formalities or requirements relating the exercise of its LLC powers or management of its business is NOT a ground for imposing personal liability on the members or managers for liability of the LLC. [1993 c. 173 section35; 1999 c.86 section 10.] So, though Oregon does not have a Series LLC, the State of Oregon does recognize the internal liability shield principle for LLCs, and that is what the courts would be looking at if you created an out of State Series LLC lets say in TX or NV or DE, and owned a property in OR or any other state that does not yet have the Series LLC and were sued in OR or that state. The personal liability shield of the Series LLC would still be upheld so long as its formalities were followed. Just like a standard LLC. I know you invest in OH property notes a lot. The good thing is OH does recognize and codified their own Series LLC when they revised their LLC Statute.
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Cody Cox
Note Investor · Wilsonville, OR · Member since 2010 · 149 posts · 113 votes
7y
Awesome information. We are still way overdue on having coffee together. What are your thoughts on having a periodic meeting of the folks involved in this group?
1 Reply
Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
7y
@Cody Cox we are way overdue for coffee. I get back in town next week. IM me and lets set a day. I think a periodic meeting for this group is a great idea. I just need some feedback from the participants who are interested and we can try to set a location and time.
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Brian Bradley
OP
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
7y
Very exciting. I’m gonna be teaching a national CLE seminar “continuing legal education” for attorneys on asset protection for the national academy of CLE.
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Patricia T.
New to Real Estate · Wilsonville, OR · Member since 2015 · 13 posts · 4 votes
5y
Hi all! Not sure if folks still follow this forum. I posted on the general BP forum and someone suggested I post to a local BP forum so ... I'm in search of a property manager in/around Tualatin, OR. I came across a 2 year old post but would welcome updated recommendations. Tia!
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